Starting a successful indoor rock climbing gym takes more than knowing how to climb a wall. Starting a new small business requires completing several steps, and obtaining licensing is an important one as it may impact your ability to operate legally.

The question, “what business license do I need to start my climbing gym” is a common one, but in reality, your business will likely need multiple licenses, permits, and registrations from federal, state, and local agencies.

Let’s look at which licenses to consider when starting a climbing gym.

Related: Guide to starting a climbing gym

What Licenses Do You Need to Start a Climbing Gym?

Facility Licensing

While somewhat rare, though becoming more common, state licensing may be needed to operate a climbing wall. In some areas licensing is required for climbing walls under the state’s amusement laws, while others require special use permits.  A few examples include:

In Massachusetts, for instance, to have a climbing wall, a Climbing Wall Facility License is required through the Amusement Advisory Board.

The Virginia, the Virginia Department of Housing and Community Development oversees permitting for climbing walls under amusement device regulations.   Local building departments often inspect the walls and ropes to ensure they are in good working order.

The City of DeKalb, Illinois, requires indoor rock-climbing gyms to obtain an Amusement Facility License.

Every area has different regulations for climbing gyms, so before purchasing or leasing a location for your climbing gym, be sure to check with the local zoning department first to ensure the business can legally operate out of the chosen location.

Certificate of Occupancy

In most communities, a climbing gym will likely need to secure a Certificate of Occupancy (CO) before operating in a commercial building.  This certificate is typically obtained from the city and/or the county and allows a business to occupy and operate from a building. Before the certificate is issued, the building will need to comply with zoning regulations, building codes, and any other local requirements.

In addition to facility-specific licensing, there are also several general licensing requirements for starting a climbing gym. While licensing requirements vary by location, here are a few of the common licenses and permits that a climbing gym may need:

Entity Formation

When starting a business, the legal entity (also referred to as a business structure) needs to be selected. A legal entity refers to how a business is organized to operate. There are four main types of entities; sole proprietorship, partnership, corporation, and Limited Liability Company (LLC).

Each type of entity has its own pros and cons, such as liability protection, costs, and administrative requirements.

Related: What is the difference between a sole proprietorship, partnership, corporation, or LLC?

Business Name Registration

While not necessarily a business license, it’s worth noting that to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.

For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).

Learn: How to register a DBA

Corporations and LLCs register are a little easier because the name is registered when the entity is formed with the state.

General Business License or Permit

Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.

Learn more: Business license requirements by state

Federal Employer Identification Number

The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).

Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.

Sole proprietors and single-owner LLCs without employees can instead use the owner’s social security number.

Learn: How to get an EIN 

Sales Tax Permit or Business Number

In order to sell products and/or offer certain services, a state sales tax permit (also referred to as a business tax number or tax ID number) may be needed.  This permit creates an account number with the state’s Department of Revenue (or similarly named state taxing agency) to collect and remit sales tax.

Most states don’t have a tax on a service or membership business, however, there are several that will tax amusements or gyms, so be sure to research the requirements in your state.

Learn: How to get a sales tax permit in each state

Resale Certificate

When buying inventory that is being resold to customers, such as chalk, shoes, harnesses, and other climbing gear, the business can purchase these items tax-free. A resale certificate (sometimes referred to as a seller’s permit) allows a company to purchase inventory, and instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product.

A resale certificate only allows a business to not pay sales tax for items being resold, and sales tax will still need to be paid for supplies or equipment.

Learn: How to get a resale certificate

Music License

If you plan to play music in the gym, a Public Performance License (PPL) will be needed. A blanket license can be obtained through the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music Inc. (BMI), and the Society of European Stage Authors and Composers (SESAC).

Fines from playing unlicensed music can be quite high, so be sure to get the licensing before playing in the gym.

The process of identifying all of the licenses and permits necessary to start a climbing gym may feel confusing and overwhelming. It is critical to do this right the first time, otherwise, your business may be temporarily shut down until all licenses are obtained.